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PARRISH 8-1 FIXED AND INTANGIBLE ASSETS-ACQUISITION OF ASSETS Please complete the following and explain the how and why of completing 1) identify the cost of the asset 2) For any costs incurred that are not included in the asset cost, specify how they would be recordedGrowth company purchaased a new mahcine for its manufacturing facility. Costs incurred in conjunction with this purchase included the following: Invoice price $90000, subject to 2/10, n/30Sales Tax $5400Freight to ship to Growth $6000Transport to factory $1900Repair of chip in machine from damage in loading $500Training of operators $3600Lunch for truck driver $25

PARRISH 8-1 FIXED AND INTANGIBLE ASSETS-ACQUISITION OF ASSETS Please complete the following and explain the how and why of completing 1) identify the cost of the asset 2) For any costs incurred that are not included in the asset cost, specify how they would be recordedGrowth company purchaased a new mahcine for its manufacturing facility. Costs incurred in conjunction with this purchase included the following: Invoice price $90000, subject to 2/10, n/30Sales Tax $5400Freight to ship to Growth $6000Transport to factory $1900Repair of chip in machine from damage in loading $500Training of operators $3600Lunch for truck driver $25

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 25CE: Cost of Intangible Assets Advanced Technological Devices Inc. acquired a patent for $91,500. It...
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PARRISH 8-1 FIXED AND INTANGIBLE ASSETS-ACQUISITION OF ASSETS


Please complete the following and explain the how and why of completing

1) identify the cost of the asset

2) For any costs incurred that are not included in the asset cost, specify how they would be recorded

Growth company purchaased a new mahcine for its manufacturing facility. Costs incurred in conjunction with this purchase included the following:


Invoice price $90000, subject to 2/10, n/30
Sales Tax $5400
Freight to ship to Growth $6000
Transport to factory $1900
Repair of chip in machine from damage in loading $500
Training of operators $3600
Lunch for truck driver $25

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